Questions tagged [labor-economics]

Labor economics is the branch of microeconomics that studies labor markets and its peculiarities. Labor economists usually study topics such as career choice, returns to schooling, determinants of labor productivity, wages, gender and racial gaps.

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46 views

Modeling job application process in labor market

I need to model the job application process by job seekers. Specifically a job seeker when looking for a job, comes across a job and then decides whether to apply for it or not. I want to model this ...
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Maximum wage laws in mercantilist France

One John K Williams (1986) writes that in mercantilist France, The government actually imposed maximum wage laws. Any employer who paid wages above a legally defined ceiling was charged with an ...
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360 views

Find the optimal labor supply when labor utility is linear

I have been working the afternoon on an intertemporal exercise where I'm blocking on something very basic. Have been looking on previous posts but didn't find a similar question. We have the utility ...
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1answer
193 views

Analyzing Farm Bureau's claim that milk prices would double at the retail level if all the illegals were deported

A 2015 article on the Farm Bureau's website states: Half of all workers on U.S. dairy farms are immigrants, and the damage from losing those workers would extend far beyond the farms, nearly ...
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46 views

How many of the world's workers are producing luxury vs necessary goods?

Has there been any scholarship done on the proportion of producers producing high-end vs low-end goods? This could also be framed as the proportion of economic activity generated by wealth excess of a ...
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1answer
377 views

Has US real median personal/household income been stagnant since the late 1970's/early 1980's?

This is referring to an earlier question: Why are real median household incomes stagnant? How do the following graphs actually tell you that US real median personal/household income has been stagnant ...
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1answer
54 views

Structural Modelling of Expectations/Beliefs

I'm trying to build a structural model explaining the job search process by the job-seeker. One of the crucial component of job search, that i want to model, is the expectation about the employer. So ...
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3answers
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Can lower working hours beat unemployment?

The common sense reasoning is downright simple: if X hours of works are needed per month, and Y people are available to work, give each person X/Y hours of work each month. I understand that there ...
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2answers
149 views

Does working abroad cause less unemployment however small?

The context of this question arises from people in third world countries going abroad to work. Often they are seen as money-hungry people who don't love their country (unless they are, say, physicists ...
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243 views

Can higher working hours reduce productivity?

Are there studies about the impact on per-hour output (productivity) of increasing the number of hours worked each week by employees? If every employee works 3hrs/week longer (from 41 to 44hrs), does ...
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1answer
147 views

What economic factors should be considered in attracting suitable staff and determining pay for temporary project work?

Getting qualified workforce for temporary projects can be difficult. If found from within the organisation, they may have to abstain from their regular work, and this may create additional ...
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Testing Roberts's Law: data request on CEO pay and company characteristics

I posted here regarding sources for Roberts's Law. In this paper it gives a clear qualification of what Roberts's law is. (Page 9, ...Cross-sectional prediction..) ..In a given year, the ...
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1answer
309 views

Slutsky Decomposition of Given Labor Supply Model

Let utility curve an individual given as $U(C,R) = C^aR^{1-a}$ where $(0\lt a \lt 1)$ and $C$ denotes consumption commodity and $R$ denotes its leisure, and price of $C$ is given as $P$, and the ...
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47 views

Effects of Robotics on the overall marginal propensity to consume

Basically we know that poor and middle class workers have a high marginal propensity to consume as compared to rich people. Assuming that all of their jobs will be done by robots, and only a few ...
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1answer
37 views

How is it traditionally defined the minimum wage legislation in economics?

How is it traditionally defined the minimum wage legislation in economics? And which countries does not have a minimum wage legislation as defined in these terms?
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1answer
102 views

Amplification Effects: Negative Denominator

Let $0 < \rho < 1$ be the discount rate, $V$ some option value, and $F$ some fundamental. $$ \rho V = \beta V + F$$ You have access to some option value $V$ that will always deliver you some ...
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626 views

Is the labor force participation rate related more to labour supply or to labour demand? Or both?

I have read several Labor Economics books, but I am stuck. Is the labor force participation rate related more to the labour supply or to the labour demand? If the labor force participation rate ...
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Difference between embodied and commanded labor in the Labor Theory of Value?

Could the difference between "labor embodied" (production cost in labor value) and "labor commanded" (selling price in labor value) as described in the labor theory of value be attributable to the ...
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36 views

Quarterly industry-level productivity growth?

Are there any quarterly data on industry-level productivity growth (i.e., by NAICS code) in the United States? I've looked around for a while but haven't been able to find anything. BLS publishes ...
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“Normal” vs “actual” variables in empirical work

In an early OECD study by Deppler and Ripley (1978), the authors distinguish between output per man hour, $OMH$, and what they call "Normal" output per man-hour, $NOMH$. (table 2, p152) At no point ...
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77 views

Theoretical/Empirical Arguments for Migrant Workers in the US

Consider the events that are developing in the US with regards to labor-intensive manual work and migrant workers. If more and more migrant workers are banished from the work pool, it remains a highly ...
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539 views

What are the economic perspectives regarding the game of salary negotiations?

Apologies if I use non-economic language to explain what I suspect is a practical application of economics. I have no formal education in economics whatsoever but hoping you guys/girls might be able ...
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1answer
45 views

Effects on transit system shutdown based on local workforce end-of-day times?

I'm curious if there are any studies based on logistics and economics of shutting down the bus/transit system before the general population's working class can go home. For example, the small town I ...
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1answer
54 views

Why does the Federal Reserve seem to hold so much weight on the unemployment rate, relative to labor participation?

The title is the question. In the press conference held yesterday, the Chair referenced "unemployment" 18 times, relative to "participation" 3 times. If the labor participation is at the lowest ...
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2answers
79 views

Literature request: Any articles on the signalling theory / game theory / asymmetric information of the firms' recruiting process?

I'd like to read more about the recruiting process of firms. Signalling theory and game theory can be a useful tool to better understand this phenomena. For example: Applicants, who ask for higher ...
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1answer
318 views

Exam question implies that a perfect labour market can have wage differentials?

My understanding is that wage differentials should not exist in a perfect labour market for occupations, but the following exam question seems to imply that this can be the case. A brief marking ...
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Understanding the effects of government deficit on international trade

Understand that I'm a total novice with regard to economics. Also, while I ultimately have an axe to grind (doesn't everyone?) I'm not trying to do that honing here, I'm simply looking for a sanity ...
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112 views

In a context of globalisation and high wage inequality, why should governments help unskilled workers?

With globalisation, wage inequality continues to be a strong issue for many developed nations. What I seek to find out here is, why should we even do anything to help the unskilled workers? From ...
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83 views

How can I model immigration and xenophobia economically using these equations?

I'm trying to put together a toy model for immigration ($I$), labor prices ($w$), and a measure of xenophobic/nationalistic sentiment ($A$). What I've come up with so far is the following: $$\frac{dI}...
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2answers
151 views

Due to rising costs of college tuition, is it likely that the future will have less universities and the remaining only for those of much wealth?

I am very sorry if this is worded wrong. I've looked at the numbers myself and it astounding how much college has gone up in price even for commuters in a few decades. People didn't need these ...
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Why aren't there more super-stars in educational content delivery?

The super-star phenomena seems to happen in any field where the marginal cost of distribution is very low. I think teaching could be that way just as much as acting or playing basketball - at least as ...
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2answers
166 views

Does the government have a role to play in certifying people's abilities for the labor market?

The nature of information often makes it look like a public good. Is this the case for certification of peoples abilities? Is there a role the government could play in certifying people's abilities? ...
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163 views

Why don't prices of USA labor and Mexican labor equalise?

That Mexicans workers get paid less US workers is a dynamic which motivates the moving of production to Mexico. This idea can be abstracted to Developed Markets (DM) labor and Emerging Markets (EM) ...
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199 views

Welfare analysis for a military draft

How would the welfare analysis of a military draft look? My intuition tells me that it would look similar to a price ceiling below the equilibrium, with the exception that suppliers (civilians) are ...
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2answers
540 views

Are American poverty rates increasing? What about global poverty rates

http://www.npc.umich.edu/poverty/ https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-people.html I have heard numerous times that the future has gotten better. ...
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1answer
75 views

What changes the structural rate of output/unemployment?

To me the structural rate of unemployment was defined by $$\frac{1}{1+m} = F(u_n,z)$$ where $m$ is the markup and $z$ a catch-all variable. We could equivalenty get this in terms of $Y_n$ by letting $...
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1answer
96 views

Question about skill-biased technical change, Acemoglu

I am writing about skill-biased technical change, and in particular the 2001 Acemoglu (http://economics.mit.edu/files/283) paper on the topic, in which there is a part I am very stuck on. In the ...
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2answers
118 views

Do wages differ in two perfectly competitive labour markets?

I understand that within a single labour market, the wages would be the same between two workers as firms and workers are both wage takers, but what about when there is more than one perfectly ...
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78 views

Labor market supply optimization [closed]

How do I optimise this type of problem? I have read something about applying the chain rule to find the first order condition but can't imagine how to express it or solve it. Can somebody give me a ...
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1answer
141 views

Effect of changing Non Labor Income on Consumption-Leisure problem

Given a Utility function $U(c,l) = c - \frac{1}{2}l^2$ , where $c$ is the consumption and $l$ is the number of hours of labour. Let $L$ be the maximum amount of labor, so the amount of leisure is $L - ...
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Sample weights in Stata: fweight vs. pweight

I'm working with IPUMS ACS and Census data in Stata. I'm interested in learning about income distributions and variability for specific subpopulations defined by education level, occupation, race and ...
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1answer
146 views

Why the difference in productivity and wage trend in the UK economy?

In reading this article from FT, we come across two graphs: and Shouldn't real wages have a similar trend to productivity? Why was there that discrepancy since the 2009 until 2014? Maybe some other ...
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1answer
48 views

Revenue maximization same as increase contribution margins?

Under which condition, will it be the same whether you choose to use revenue maximization or to increase contribution margins? In what industry is this possible? In my thought process, I was ...
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339 views

Local and Central Wage Bargaining: What Is the Difference?

Consider the following setting: Profit maximizing firms with production functions $\Pi(w,L)$, where $w$ is the wage and $L$ is employment. Unions who want to maximize the expected utility of their ...
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1k views

Graduate Level Textbook on Labor Economics and Macro-Labor

What would be good textbooks at the graduate level that deal with Labor Economics and Labor-Macro (As in, Equilibrium Unemployment Theory, Shimer Puzzle etc)?
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4answers
314 views

Reference request on “post-scarcity” economics?

Some friends and I have been discussing, speculatively, what might happen in the future after technology/increased automation greatly reduces the need for human labor. The Marxists / leftists among ...
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1answer
45 views

Directed search with privately informed buyers and capacities

My question seems to be a basic one and there should be a rather well-known reference in the (IO or labor) search literature. I will upvote (and comment on) any relevant answer and I will accept an ...
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140 views

Teaching ethics and its Economic value

Is there any literature that considers the benefits of ethical behaviour or teachings in Economics in terms of its value added to human capital? If there is no difference in value added, then is ...
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101 views

How can median wages be significantly different in two neighboring countries with open borders?

As an example, take Germany and Czech Republic. Both are members of the EU and therefore trade barriers between the two countries are minimal. However the median salary in Germany is nearly 3 times as ...
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109 views

Minimum Wage effects on Adjacent Cities

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? Are there examples, studies or accepted practices to address: Difficulty staffing ...

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